SHORT TERM: again higher open then pullback, DOW -37
Overnight the Asian markets gained 0.3%. Europe opened higher and gained 0.4%. US index futures were higher overnight, and the market opened 3 points above yesterday’s SPX 2399 close. By 10am the SPX hit a new all-time high at 2404, and then started to pullback. Also at 10am wholesale inventories were reported higher: 0.2% v 0.3%. The market then drifted lower, with 3 point bounces along the way, until it hit SPX 2392 around 3:30. Then a bounce into the close ended the day at SPX 2397.
For the day the SPX/DOW lost 0.15%, and the NDX/NAZ gained 0.30%. Bonds lost 5 ticks, Crude dropped 50 cents, Gold slid $7, and the USD was higher. Medium term support remains at the 2385 and 2336 pivots, with resistance at the 2411 and 2428 pivots. Tomorrow: export/import prices at 8:30, then the federal budget at 2pm.
The market opened at an all-time high today, hit SPX 2404, (within the 2411 pivot range), setup a short negative divergence, and then pulled back. The third wave we have been tracking from SPX 2345 looks like it could have ended today. This would be confirmed with a drop into the low SPX 2380’s. Support for any pullback looks to be around SPX 2380, where the market double bottomed last week. A decline to below SPX 2361 would suggest the entire 2329-2404 rally as a B wave. Other than that it looks like a normal pullback in an ongoing uptrend. Short term support is at the 2385 pivot and SPX 2361, with resistance at the 2411 and 2428 pivots. Short term momentum neared oversold after posting a negative divergence at the high. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: uptrend